ANHEUSER-BUSCH INBEV-SPN ADR (BUD) Stock Fundamental Analysis
NYSE:BUD - New York Stock Exchange, Inc. - US03524A1088 - ADR - Currency: USD
Overall BUD gets a fundamental rating of 4 out of 10. We evaluated BUD against 32 industry peers in the Beverages industry. There are concerns on the financial health of BUD while its profitability can be described as average. BUD has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
BUD had positive earnings in the past year.
In the past year BUD had a positive cash flow from operations.
BUD had positive earnings in each of the past 5 years.
In the past 5 years BUD always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.83%, BUD perfoms like the industry average, outperforming 40.63% of the companies in the same industry.
BUD's Return On Equity of 7.48% is in line compared to the rest of the industry. BUD outperforms 40.63% of its industry peers.
BUD's Return On Invested Capital of 6.49% is in line compared to the rest of the industry. BUD outperforms 43.75% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BUD is significantly below the industry average of 11.91%.
The 3 year average ROIC (6.05%) for BUD is below the current ROIC(6.49%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.83% | ||
| ROE | 7.48% | ||
| ROIC | 6.49% |
ROA(3y)2.69%
ROA(5y)2.17%
ROE(3y)7.38%
ROE(5y)6.2%
ROIC(3y)6.05%
ROIC(5y)5.66%
1.3 Margins
Looking at the Profit Margin, with a value of 9.80%, BUD is in the better half of the industry, outperforming 71.88% of the companies in the same industry.
BUD's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 25.87%, BUD belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
BUD's Operating Margin has declined in the last couple of years.
BUD has a Gross Margin of 55.25%. This is in the better half of the industry: BUD outperforms 78.13% of its industry peers.
In the last couple of years the Gross Margin of BUD has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.87% | ||
| PM (TTM) | 9.8% | ||
| GM | 55.25% |
OM growth 3Y-0.42%
OM growth 5Y-3.7%
PM growth 3Y4.44%
PM growth 5Y-10.98%
GM growth 3Y-1.3%
GM growth 5Y-1.99%
2. Health
2.1 Basic Checks
BUD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for BUD has been reduced compared to 1 year ago.
The number of shares outstanding for BUD has been increased compared to 5 years ago.
BUD has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.79, we must say that BUD is in the distress zone and has some risk of bankruptcy.
BUD has a Altman-Z score (1.79) which is in line with its industry peers.
BUD has a debt to FCF ratio of 6.45. This is a slightly negative value and a sign of low solvency as BUD would need 6.45 years to pay back of all of its debts.
The Debt to FCF ratio of BUD (6.45) is comparable to the rest of the industry.
BUD has a Debt/Equity ratio of 0.90. This is a neutral value indicating BUD is somewhat dependend on debt financing.
The Debt to Equity ratio of BUD (0.90) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 6.45 | ||
| Altman-Z | 1.79 |
ROIC/WACC1.04
WACC6.25%
2.3 Liquidity
A Current Ratio of 0.70 indicates that BUD may have some problems paying its short term obligations.
BUD's Current ratio of 0.70 is on the low side compared to the rest of the industry. BUD is outperformed by 84.38% of its industry peers.
A Quick Ratio of 0.54 indicates that BUD may have some problems paying its short term obligations.
BUD's Quick ratio of 0.54 is on the low side compared to the rest of the industry. BUD is outperformed by 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
BUD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.33%, which is quite good.
BUD shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.83% yearly.
Looking at the last year, BUD shows a decrease in Revenue. The Revenue has decreased by -1.45% in the last year.
The Revenue has been growing slightly by 2.69% on average over the past years.
EPS 1Y (TTM)13.33%
EPS 3Y4.79%
EPS 5Y-1.83%
EPS Q2Q%8%
Revenue 1Y (TTM)-1.45%
Revenue growth 3Y3.25%
Revenue growth 5Y2.69%
Sales Q2Q%-6.32%
3.2 Future
BUD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.11% yearly.
BUD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.38% yearly.
EPS Next Y4.12%
EPS Next 2Y8.45%
EPS Next 3Y12.23%
EPS Next 5Y12.11%
Revenue Next Year1.78%
Revenue Next 2Y3.14%
Revenue Next 3Y3.48%
Revenue Next 5Y4.38%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
BUD is valuated rather expensively with a Price/Earnings ratio of 18.67.
BUD's Price/Earnings ratio is a bit cheaper when compared to the industry. BUD is cheaper than 62.50% of the companies in the same industry.
BUD is valuated rather cheaply when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 16.16, BUD is valued correctly.
Based on the Price/Forward Earnings ratio, BUD is valued a bit cheaper than 75.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.85. BUD is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.67 | ||
| Fwd PE | 16.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BUD is valued cheaper than 84.38% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BUD is valued cheaply inside the industry as 90.63% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.89 | ||
| EV/EBITDA | 9.02 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BUD does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as BUD's earnings are expected to grow with 12.23% in the coming years.
PEG (NY)4.53
PEG (5Y)N/A
EPS Next 2Y8.45%
EPS Next 3Y12.23%
5. Dividend
5.1 Amount
BUD has a Yearly Dividend Yield of 1.16%.
Compared to an average industry Dividend Yield of 2.83, BUD has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, BUD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
5.2 History
The dividend of BUD decreases each year by -12.03%.
BUD has paid a dividend for at least 10 years, which is a reliable track record.
BUD has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-12.03%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
BUD pays out 45.64% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP45.64%
EPS Next 2Y8.45%
EPS Next 3Y12.23%
68.35
-0.45 (-0.65%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners17.94%
Inst Owner Change3.13%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap133.04B
Analysts83.03
Price Target80.67 (18.02%)
Short Float %0.59%
Short Ratio2.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
Yearly Dividend1.35
Dividend Growth(5Y)-12.03%
DP45.64%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.01%
Min EPS beat(2)5.76%
Max EPS beat(2)20.27%
EPS beat(4)4
Avg EPS beat(4)10.29%
Min EPS beat(4)4.3%
Max EPS beat(4)20.27%
EPS beat(8)8
Avg EPS beat(8)6.77%
EPS beat(12)10
Avg EPS beat(12)7.21%
EPS beat(16)13
Avg EPS beat(16)7.45%
Revenue beat(2)1
Avg Revenue beat(2)0.19%
Min Revenue beat(2)-4.2%
Max Revenue beat(2)4.57%
Revenue beat(4)2
Avg Revenue beat(4)-0.03%
Min Revenue beat(4)-4.2%
Max Revenue beat(4)4.57%
Revenue beat(8)2
Avg Revenue beat(8)-1.53%
Revenue beat(12)4
Avg Revenue beat(12)-1.48%
Revenue beat(16)7
Avg Revenue beat(16)-0.4%
PT rev (1m)3.4%
PT rev (3m)12.93%
EPS NQ rev (1m)-1.19%
EPS NQ rev (3m)-0.97%
EPS NY rev (1m)-0.5%
EPS NY rev (3m)2.35%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.67 | ||
| Fwd PE | 16.16 | ||
| P/S | 2.23 | ||
| P/FCF | 11.89 | ||
| P/OCF | 8.84 | ||
| P/B | 1.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.02 |
EPS(TTM)3.66
EY5.35%
EPS(NY)4.23
Fwd EY6.19%
FCF(TTM)5.75
FCFY8.41%
OCF(TTM)7.73
OCFY11.32%
SpS30.71
BVpS40.2
TBVpS-37.13
PEG (NY)4.53
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.83% | ||
| ROE | 7.48% | ||
| ROCE | 8.91% | ||
| ROIC | 6.49% | ||
| ROICexc | 6.95% | ||
| ROICexgc | 96.58% | ||
| OM | 25.87% | ||
| PM (TTM) | 9.8% | ||
| GM | 55.25% | ||
| FCFM | 18.73% |
ROA(3y)2.69%
ROA(5y)2.17%
ROE(3y)7.38%
ROE(5y)6.2%
ROIC(3y)6.05%
ROIC(5y)5.66%
ROICexc(3y)6.43%
ROICexc(5y)6.06%
ROICexgc(3y)81%
ROICexgc(5y)72.75%
ROCE(3y)8.3%
ROCE(5y)7.79%
ROICexcg growth 3Y11.31%
ROICexcg growth 5Y15.72%
ROICexc growth 3Y4.65%
ROICexc growth 5Y2.73%
OM growth 3Y-0.42%
OM growth 5Y-3.7%
PM growth 3Y4.44%
PM growth 5Y-10.98%
GM growth 3Y-1.3%
GM growth 5Y-1.99%
F-Score8
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 6.45 | ||
| Debt/EBITDA | 3.37 | ||
| Cap/Depr | 69.68% | ||
| Cap/Sales | 6.46% | ||
| Interest Coverage | 4.24 | ||
| Cash Conversion | 71.67% | ||
| Profit Quality | 191.15% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 1.79 |
F-Score8
WACC6.25%
ROIC/WACC1.04
Cap/Depr(3y)85.67%
Cap/Depr(5y)89.39%
Cap/Sales(3y)7.73%
Cap/Sales(5y)8.33%
Profit Quality(3y)163.01%
Profit Quality(5y)238.24%
High Growth Momentum
Growth
EPS 1Y (TTM)13.33%
EPS 3Y4.79%
EPS 5Y-1.83%
EPS Q2Q%8%
EPS Next Y4.12%
EPS Next 2Y8.45%
EPS Next 3Y12.23%
EPS Next 5Y12.11%
Revenue 1Y (TTM)-1.45%
Revenue growth 3Y3.25%
Revenue growth 5Y2.69%
Sales Q2Q%-6.32%
Revenue Next Year1.78%
Revenue Next 2Y3.14%
Revenue Next 3Y3.48%
Revenue Next 5Y4.38%
EBIT growth 1Y5.98%
EBIT growth 3Y2.81%
EBIT growth 5Y-1.1%
EBIT Next Year41.45%
EBIT Next 3Y16.39%
EBIT Next 5Y12.38%
FCF growth 1Y29.73%
FCF growth 3Y6.91%
FCF growth 5Y4.78%
OCF growth 1Y13.49%
OCF growth 3Y0.57%
OCF growth 5Y1.41%